China fund mulls buying 4 to 10% stake in Daimler: Report

SHANGHAI (AFP) - China's sovereign wealth fund is considering buying a four to 10 per cent stake in German automaker Daimler, the website of the official People's Daily newspaper said at the weekend.

The potential purchase comes as China Investment Corp. (CIC), which had more than US$480 billion (S$59 billion) from the wealth fund under management at the end of 2011, seeks bargains in Europe's weak economy, said the website, quoting unnamed sources.

But a source with knowledge of the matter dismissed the report, saying it was "not true". Chinese media reported nearly a year ago that Daimler had been in contact with CIC regarding a possible deal.

The Financial Times newspaper valued a purchase of four to 10 per cent of Daimler at 1.8 billion (S$2.9 billion) to 4.5 billion euros.